Cartel pricing refers to an agreement made by members of the cartel to abide by the cartel's price decision. The outcome most closely resembles that of a

Current equilibrium output equals $2,500,000, potential output equals $2,600,000, and the marginal propensity to consume equals 0.75. Under these conditions, a Keynesian economist is most likely to recommed

A) decreasing taxes by $25,000 B) decreasing taxes by $100,000 C) increasing government spending by $25,000 D) increasing government spending by $33,333 E) increasing government spending by $100,00

What is a price cap? Why might it be a more effective way of regulating monopoly than rate of return regulation?

What will be an ideal response?